This study attempts to estimate the demand for labor under the fifth Five-Year Economic Development Plan, as well as the long-term changes in the demand for labor, up to 1991. In order to achieve its goal of a Korean welfare society in the 1980s, the Korean government will need to direct its attention to labor. Cheap, abundant, and skilled labor is not only the greatest asset towards Korea’s continued economic growth, but workers as consumers are also both the means and ends of production. Without enhancing the productivity of the Korean workforce, the country will not be able to achieve a welfare society. The central task of the Korean government in the 1980s should be to adjust and maintain the balance between growth and stability, by developing an effective workforce policy. The key claim of this study is that, while occupational training is important in Korea, the path to a welfare society lies in ensuring an efficient distribution of Korea’s workforce by modernizing employment stabilization. The conclusions of this study are summarized as follows: First, significant investment needs to be made into establishing pragmatic labor-management relationships and into developing new technologies to increase productivity. Second, the number of local or regional daycare facilities should be increased, as married women in their 30s or older are more likely than their younger and unmarried counterparts to join the workforce, and as it will be important for Korean industries to retain these working women. Third, businesses need to establish responsible personnel management systems so as to ensure that only competent and enthusiastic employees are hired and retained. Fourth, rationalization of employment is crucial to improving the productivity of the Korean workforce. Fifth, the wage and remuneration system needs to be reformed so that individuals and groups earn in proportion to what they contribute. Sixth, Korean fiscal and financial policies should be developed and implemented only after job market circumstances are taken into consideration. Seventh, the Korean government should create employment support centers throughout the nation, and merge them with local institutes for occupational training and functional certification into local HR complexes, to minimize fractional employment. Eighth, the government should minimize its intervention in labor-management relations, instead encouraging labor and management to settle their disputes on their own.